By HELEN ZULU -
THE Zambia Institute of Chartered Accountants (ZICA) has launched a property fund to provide unit holders with stable cash distributions from investments in the diversified portfolio as one way of sustaining itself in the long term.
ZICA president Jason Kazilimani explained that the fund was a sub-fund under the umbrella of Equity Capital Resources Unit Trust (ECRUT) which is an authorised collective investment scheme under section 121 of the Securities and Exchange Commission Act number 41 of 2016.
Mr Kazilimani said the fund was established with the principle investment objective of owning and investing in a diversified portfolio of income producing real estate in Zambia with high growth potential.
He said during the launch of the ZICA property fund in Lusaka yesterday that the fund manager sought to grow rental yields, produce regular and stable distribution to holders and achieve long term growth in the net asset value per unit of the fund through acquiring property that met the fund investment policy and objectives.
“We have embarked on a diversification programme as part of enhancing our sustainability in the long term in line with our strategic plan,” he said.
The programme would result in the development of a conference and office complex in Lusaka, the international convention centre in Livingstone and a regional office block in Kitwe and land was already available for the projects.
He said the launch of the fund created an opportunity for ZICA members and other investors to invest in the fund.
Mr Kazilimani told ZICA members that the opportunity provided a unique investment opportunity where members could acquire a stake in the fund for the benefit of their next of kin.
The Unit Trusts should be acquired with the long term investment view in mind in order to be beneficial to the investor and to non-members it did not only provide an opportunity to significantly contribute to the outlook of the new central business district but also to the economic development of the country.
Finance Minister Felix Mutati said it was encouraging to see accountants coming up with such innovative ideas aimed at raising resources to invest in projects that would further yield better returns.
Mr Mutati said Government was ready to support the institute in its quest to make a difference in the country.
“It is encouraging to see institutions like ZICA coming up with innovations such as this fund aimed at raising resources, accountants should ensure that they invest in the fund,” he said.
He said accountants alone could not manage and there was need for road shows in various places to sell the idea.